Reproduction forbidden Commissioned by the Ministry of Economy, Trade and Industry

The Study on Wastewater Treatment and Water Reuse in Saudi-Aramco, Saudi Arabia

January 2009

Japan External Trade Organization（JETRO） Water Re-use Promotion Center Sumitomo Corporation Mitsubishi Heavy Industries, LTD

1. Survey purposes and the background In Saudi Arabia, in order to get rid of its oil-dependent constitution, it has been determined as a national strategy to develop from mere export of crude oil to increase in export ratios of oil products and further petrochemical products. The symbolic existences to realize this are the oil refining factories affiliated with Saudi Aramco and petrochemical industries making use of gas and oil-related raw materials, and industrial estates where both of them exist. These factories are developing in good order and rapidly, but the reserve for water supply decreases in the present condition, and it has been pointed out that sooner or later a serious deficiency of industrial water will become an annoying problem. The industrial water is likened to the blood of industry and is an indispensable existence for the industrial production.

Especially, oil refining and petrochemical industry

require vast quantities of cooling water, and if it is deficient, stop of production is unavoidable. Further, it will become necessary to secure a largely increased demand for industrial water to be caused by business expansions in the future. At present, the supply of industrial water depends on the desalination of seawater which is expensive (6 Saudi rial/ｍ3） and consumes much energy. If this is made up by reuse of wastewater which is inexpensive and consumes less energy, it will be not only be economical but also be helpful in preventing global warming, realizing a profit of as if killing two birds with one stone. In the 2006 fiscal year, a feasibility survey on wastewater reuse was conducted focusing on Jubail which is a representative industrial estate in Saudi Arabia. In the 2008 fiscal year, based on the results of this survey and in the form of more responding to the national strategy of Saudi Arabia, a survey concerning the measures for securing stable supply of industrial water was implemented to contribute to the promotion of spreading toward practical application. Concretely, with the Riyadh Refinery Plant which was desired by the Saudi Aramco side as the object, concept design, financial analysis, economics analysis and social and environmental impact evaluations were implemented, and a survey for project feasibility for wastewater treatment and reuse technologies was conducted.

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2. Survey contents Surveys were conducted mainly on the following two points. 1)

Survey of the conditions of water and wastewater and the possibilities of

wastewater reuse in the Saudi Aramco's Riyadh Refinery Plant (on-site survey) 2) Environmental and social considerations and relevant laws and regulations on implementing wastewater reclamation and reuse in Saudi Arabia (interviewing to the people concerned and survey of books) The on-site survey of the Saudi Aramco's Riyadh Refinery Plant was implemented at the end of October of 2008. We received explanations on the present conditions of water and wastewater, and also, we visited and inspected major water-using processes and wastewater treatment facilities, etc.

Moreover, we surveyed on the factory side's

desire for the reuse of wastewater. Concrete survey items are as follows. 1) Industrial water Kinds of water sources, quantities of water to be used, water treatment, water quality required as industrial water, main water using processes, water sources with or without reserves, and cost 2) Factory wastewater Wastewater quantity, wastewater quality, wastewater treatment 3) Others Boilers, cooling towers and evaporation ponds Moreover, concerning the environmental and social considerations to be taken in implementing wastewater reclamation and reuse in Saudi Arabia and the relevant laws and regulations, surveys concerning the following contents were conducted in the country of Japan. 1) Social and environmental laws and regulations in Saudi Arabia 2) Final discharge standards for wastewater in Saudi Arabia 3) Government administration organizations in Saudi Arabia 2

4) Regulations, etc. on introduction of foreign capitals in Saudi Arabia 5) Other relevant laws and regulations (company laws, labor laws, etc.) in Saudi Arabia 6) JETRO and JBIC Guidelines for Environmental and Social Considerations, etc.

3. Survey implementing methods, systems and schedules (1) Survey implementing methods In the first in- country work, preparations for the first on-site surveys were made. Formation of survey teams, adjustment of on-site survey schedules with the counter part, collection of information about the Saudi Aramco's Riyadh Refinery as the survey object, etc. were done. The first on-site survey was implemented between October 25 and October 30, 2008. The survey team was composed of project leaders, water and wastewater technical experts, membrane treatment technical experts, and experts of cost evaluation, etc for implementing surveys. The research team visited the Riyadh Refinery Plant, and made surveys concerning the conditions of industrial water and wastewater and also visited and inspected the facilities. As a result, industrial water treatment facilities, main water discharge processes, etc. were clarified. Moreover, in this survey, the Aramco side presented 9 subject items in relation to the wastewater treatment and reuse and asked us to cooperate on the method of their solution. In the second in-country analysis, the results of the first on-site survey were rearranged and adjusted, and investigations on the wastewater reclamation and reuse processes were made, and moreover, responses to the 9 subject items presented from the Saudi Aramco side were investigated. The JETRO Team has sent to Saudi Arabia side by E-mail such questionnaires as necessary information for performing the more detailed conceptual design etc, additionally to the information obtained in the first on-site survey, and as related to the 9 subject items presented from the Saudi Aramco side.

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The second on-site survey had been scheduled as follows.

That is, it should be

implemented for the purposes such that the wastewater reclamation and reuse processes investigated in the in-country work should be presented to the Saudi Aramco side, the optimum processes should be investigated by both parties, and the addressing methods to the subjects demanded from the Saudi Aramco side should be presented. However, after implementation of the in-country work, we found several documents related to the water and wastewater information on Riyadh Refinery Plant and enough data on the quality and quantity of water and wastewater in oil refinery industry. Therefore it was found that we could conduct our work for the wastewater reuse at Riyadh Refinery Plant in the in-country work and the second on-site survey should be replaced by literature survey. In the third in-country work, the wastewater reuse process for Riyadh Refinery Plant has been studied in more detail and the economical study, environmental and social study have been conducted to make the original plan for this report. . The third on-site survey had been scheduled to be implemented with purposes such that we should visit the site and present the original plan of report to the Saudi Aramco side and reflect the Aramco side's opinions on the final report. However, we already listened to and discussed with Saudi Aramco side in the first on-site survey on their opinion related to the wastewater reuse and so on, and therefore, our basic concept is considered to include their opinions. It was decided not to implement the third on-site survey. In the fourth in-country analysis, after the third in-country analysis, the final reports in Japanese and in English were prepared and submitted to JETRO at the end of January, 2009,. (2) Survey implementing system Figure1 shows the survey implementing system.

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Figure1 Chart for Survey Implementing System Project

Technical Leader

Leader

on Wastewater Reuse

Industrial Water Treatment Effective Use of Industrial Water

Process Study

(WRPC)

Sludge Treatment Coagulants & Chemicals Environment & Wastewater Reuse Membrane Specialist Overall Membrane Technology &Treatment MF/UF Membrane

RO Membrane Oil Refinery Process Energy & Wastewater Treatment at Refinery Plant Social Index Analysis Finance & Economy Leader on Planning for Commercialization

Evaluation of Planning

(Sumitomo Corp.）

Environmental & Social Evaluation 環境・社会評価担当 Funding Plan Negotiation with Saudi Aramco

Leader on Engineering (Mitsubishi Heavy Industries, Ltd.)

Process Evaluation &Designing

プロセス評価・設計担 当 Evaluation on

membrane fouling Cost Evaluation Pretreatment of membrane 5

(3) Survey schedule Figure2 shows the survey schedule.

Figure2 Survey schedule 2008 Oct. In-country

First in-country work

work

Second in-country analysis

Nov.

2009 Dec.

Jan.

Third in-country analysis Fourth in-country analysis On-site

First on-site survey

work In the first in-country work, preparations for on-site surveys were made. For the first on-site survey, a survey team composed of a project leader, water and wastewater experts, membrane treatment technology experts, experts of cost evaluation, etc. was organized, and the survey was made between October 25 and October 30. In the second in-country analysis, data obtained by the first on-site survey were rearranged and adjusted, and further, an investigation on the wastewater reclamation and reuse process was made. In the third in-country work, based on the wastewater reclamation and reuse process, economics analysis, environmental and social evaluation, etc. were made and an original plan of the report was prepared. In the fourth in-country work, the final report was completed and for the presentation to the Saudi Aramco side, report translation into English was conducted.

4. Survey results This survey was made, based on the desire of the Saudi Aramco, on its Riyadh Refinery 6

Plant. In the country of Saudi Arabia, there are five oil refineries. The Riyadh Refinery Plant is one of them, but while the other refineries face the ocean, convenient for the export of products, only this refinery is located inland. The Riyadh Refinery Plant treats crude oil of 122,000 b/d, and the main products includes LPG, gasoline, kerosene, Diesel oil, fuel oil, asphalt, etc. The water intake for the Riyadh Refinery is the secondary treated water of the sanitary wastewater treatment plant 17 km apart. For this purpose, the refinery is provided with water treatment facilities which treat the secondary treated water to make cooling tower makeup water, boiler feed water, etc. In the study of this time, possibility investigations for reuse including the economics were implemented on the following four kinds of wastewater. １）Boiler blow down ２）Cooling tower blow down ３）Oily wastewater from API oil separator ４）Sanitary wastewater As a result, it is concluded that, while the quantity of industrial water required when reclamation and reuse is not done is 12,200 m3/d, reuse of about 8,400 m3/d becomes possible if reclamation and reuse in the four processes mentioned above is done, and the quantity of industrial water to be used can be reduced by about 60% from the present. However, the Riyadh Refinery is a special case where both water cost and wastewater cost are free of charge, and it is obvious that the economics of reclamation and reuse does not hold there. In this connection, we have made also an investigation, based on the concept design of the Riyadh Refinery, on another concept design for the reclamation and reuse of wastewater in an oil refinery of daily capacity of 300,000 bbl as a standard oil refinery. As a result, it was found that the plant construction cost is $29.6 million (about ¥2.76 billion) and the total cost is 83 cents/m3 (at the rate of $1 = ¥93.3), and as compared with the charge of industrial water supplied by the desalination of seawater, about ¥180/m3, there is an adequate economic merit. Moreover, even a comparison of electric 7

power cost has clarified that, as compared with seawater desalination by the RO process, the cost of wastewater reuse is less than 1/3. Regarding the technical advantage of the enterprises of our country, it is considered that they stand definitely in a superior position because our country has experienced long in the reuse of industrial wastewater. In addition, concerning the membrane treatment technology adopted in this concept design, the Japanese enterprises have the world highest market share. Moreover, as an effect which contributes to our country's stability of energy, if it is possible in the Saudi Aramco to reduce the demand for industrial water and reduce the cost of industrial water through reuse of wastewater on the basis of our country's excellent technology and experience, it is considered that it will make much contribution to the same company and in turn lead to our country's stable oil import.

5. Application and expectations of survey results The results of concept design and the results of economics analysis on the industrial water reclamation and reuse obtained from this survey indicate the adequate feasibility of the project, and they may be applied in the future to the factories (almost 20) of Saudi Aramco including oil refineries and related factories such as gas factories, petrochemical factories, etc. Moreover, these results may be applied to the factories of other than Saudi Aramco and the oil-related factories in the Middle and Near East countries outside the Kingdom of Saudi Arabia. The number of these factories can be estimated to be 50 to 100 if the plans in the near future (within 10 years) are included.

6. Investigation of environmental and social sides Laws and regulations and standards relating to the environmental and social impacts in Saudi Arabia are prescribed in the PME (Presidency of Meteorology and Environment ） Regulations and Standards, and we have conducted social and environmental investigations in accordance with these regulations and the JETRO Guidelines for Environmental and Social Considerations. By the way, Saudi Aramco 8

has established in-house provisions based on the PME Regulations and Standards, and also, we have investigated this concept design of project to be compatible with the in-house provisions as well. The same in-house provisions are the guidelines including design, work execution and operation and maintenance of wastewater treatment facilities. When the reclamation and reuse is implemented, reclaimed water is obtained and at the same time, concentrated wastewater containing impurity substances is discharged into the outside. This wastewater is to be returned to the wastewater treatment plant of Riyadh City. The standard values against which this wastewater treatment plant decides whether it should accept the influent wastewater or not in this case are prescribed in the PME Regulations and Standards. And, even this concept design has assumed to allow the wastewater to be discharged when it conforms to these standard values and the in-house provisions of Saudi Aramco. Further, as the standards for the environmental considerations to be followed by the assistance organizations, etc. in Japan, we have taken up the JETRO Guidelines for Environmental and Social Considerations and the JBIC environmental check lists, and we investigated this project against them. As a result, we have drawn a conclusion that the wastewater reclamation and reuse process shown by this survey has no problem in respect of the environmental and social considerations. However, it is considered that detail investigations will further be necessary about addressing sludge generation by water treatment, energy saving effects, etc. in the future.

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